A slow inventory turnover ratio translates into a higher number of days of inventory. 1) True 2) False Listen A firm's management wants to improve its cash flows with regard to working capital and wants to reflect this priority in its annual budget. What is an appropriate plan of action? 1) Stock up on inventory in order to never run out of stock 2) Extend credit terms to customers in order to gain more sales 3) Pay all bills and payables when due 4) Speeding up collection of accounts receivable from customers